NGO Registration in West Bengal — Trust, Society and Section 8 Company Explained

A trust is the simplest form of NGO registration. In West Bengal, public charitable trusts are governed by the Indian Trusts Act, 1882, and general principles of trust law. Unlike some states, West Bengal does not have a specific Trusts Act for charitable trusts.

A trust is created by a trust deed executed by the settlor (founder) and trustees. The trust deed must specify the trust's name, objectives, trustees, beneficiaries, and property. The trust is registered with the Sub-Registrar of Assurances where the trust is located.

Trust registration requires a minimum of two trustees. The trust deed must be stamped (stamp duty depends on the trust property value) and registered with the Sub-Registrar. After registration, the trust obtains a registration number and can apply for 12A and 80G tax exemptions.

A society is a membership-based organization registered under the Societies Registration Act, 1860. In West Bengal, societies are registered with the Registrar of Societies under the West Bengal Societies Registration Act, 1961.

To register a society, you need a minimum of seven members. The memorandum of association must be signed by all members and witnessed. The society's rules and regulations (by-laws) must be submitted along with the memorandum.

The application for registration is filed with the District Registrar or the Registrar of Societies. The registration process typically takes 2-4 months. After registration, the society is a legal entity with perpetual succession.

A Section 8 company is registered under the Companies Act, 2013, with the Registrar of Companies (ROC). It requires a minimum of two directors and two members. The company's objectives must be charitable — promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection.

Section 8 companies require approval from the Regional Director (RD), which makes the process more time-consuming (30-45 days) but provides the highest credibility. They enjoy exemptions from certain provisions of the Companies Act and tax benefits under the Income Tax Act.

Trust: Simple registration, minimal compliance, suitable for family charitable activities and small organizations. However, trusts have less structured governance and limitations on holding property.

Society: Membership-based, suitable for membership organizations, clubs, and cultural groups. Requires 7 members. Governance through managing committee. More structured than trust.

Section 8 Company: Most structured with clear governance, mandatory audits, and regulatory oversight. Highest credibility. Suitable for organizations seeking government grants, international funding, or high credibility. Requires more compliance.

To avail income tax exemptions, NGOs must register under Section 12A of the Income Tax Act. 12A registration makes the NGO's income exempt from tax. Additionally, 80G registration allows donors to claim tax deductions on their donations.

The application for 12A and 80G is filed online with the Income Tax Department. The application requires the NGO's registration certificate, trust deed/MOA, financial statements, and details of activities. The processing time is typically 3-6 months.

NGOs must maintain proper books of accounts and get them audited annually. Tax returns must be filed each year. The NGO must apply its income to charitable objectives (at least 85% in India).

Regular filings with the registering authority (ROC for Section 8 companies, Registrar of Societies for societies) are required. Changes in the governing body must be reported. Failure to comply can result in penalties and cancellation of registration.